Nissan, the Japanese multinational automobile manufacturer, says they will be getting rid of 12,500 jobs around the globe. This is more than twice the figure that was stated in a previous announcement. The company plans to decrease its production volume as well as the amount of models it makes by 10 percent in the next two years, but the greater details of the job cuts remain undisclosed.
This comes while the company attempts to stabilize their finances during a time of dwindling sales. A major market for Nissan, the United States, hasn’t been particularly fruitful lately as the automotive giant has severely discounted their products to try and keep up with the sales of rival companies. A drop in sales for the first quarter has also been reported in Asia, Europe, Africa, Latin America, and the Middle East.
Where will the job cuts fall?
Nissan is drawing in their operations after years of growth under the former Chairman, Carlos Ghosn. Ghosn was driven out a year ago after allegedly being involved in financial crimes. The Chief Executive, Hiroto Saikawa, says that the company will make a lot of savings as a result of the job cuts. 6,400 of the job cuts have already been made at eight locations according to Saikawa. The other 6,100 jobs are set to be dropped between 2020 and 2022 at six other locations.
Which of the models will be affected by the production cuts has not been specified, but Saikawa says they will be focused on unprofitable models, probably such as the “compact cars” and the “Datsun range”.
Over the three months leading up to the end of June, Nissan generated an operating profit only $14 million. This same time last year, they made $1 billion; that’s a 98 percent decrease in revenue.